I had this same problem with my ipac-4 , only with players three and four only it would not only be player 4s buttons but his stick as well, after unplugging it etc it works properly for awhile and then did it again, I never got the problem solver, I don't use that panel its in the garage now, I just have a 2 player ipac 2 machine and its been fine. Would be interested in hearing what solution you find.
I think its a problem with the ipac software or something cause sometimes I would open the software and click Program and it would say cannot program or something, so I would unplug it a few times until it excepted the programming and then it would work for a while and have to do it again